Purpose

To review performance for Quarter 1 2023/24
and to report the forecast position for 2023/24, including
explanation and analysis of the drivers for the material budget
variances, and outline current and planned recovery activity to
reduce the forecast overspend.
 
To provide assurance that progress has been
made towards delivery of the agreed revenue budget and service
delivery targets, and that the reasons for major variances or
potential under-performance are understood and are being addressed
to the cabinet’s satisfaction.
 
The forecast 2023/24 outturn shows a net
overspend of £13.5 million.

Decision

That: Cabinet
 
a) Review performance and financial forecast
for year 2023/24, as set out in the appendices A-E, and identifies
any additional actions to be considered to achieve future
improvements;
b) Note the forecast revenue outturn position
at Quarter 1 2023/24 of a £13.5 million overspend, before
management action, and the potential impact of this overspend on
the council’s reserves;
c) Note the management action already
identified to reduce the forecast outturn position for 2023/24 to
£9.5 million;
d) Note the impact of the 2023/24 forecast
outturn on the 2024/25 budget requirement and the future financial
sustainability of the council;
e) Agree to receive a monthly update to
monitor the forecast revenue outturn position and actions being
taken to address it;
f) Request that Scrutiny Management Board
reviews the budget monitoring position and that relevant Cabinet
Members provide explanation for key variances and actions
identified to address key pressures; and
g) Agree the continuation and strengthening of
management actions to reduce the forecast overspend as identified
in this report.